‘The survey data indicates that the Eurozone economy looks to have continued to grow at a steady rate in August, raising hopes that the third quarter could see GDP growth match the 0.4% expansion seen in the second quarter.

‘In fact, the survey evidence suggests that the official data so far this year could yet be revised slightly higher.’

‘The risk is that the services-driven sector, particularly financial services, fared poorly again in the second quarter, which could be the difference between whether South Africa avoids slipping into a recession or not.’

In addition to the warnings about a potential recession, the Rand has also been weakened today by concerns about land seizure proceedings.

Under apartheid, minority white South Africans claimed a majority of the country’s farmland; the new ZA government is attempting to redistribute this land.

Economic analysts predict that the plans could end up causing serious economic damage, mainly because of the consequences of seizing land without compensation.

The worry is that this land grab will dissolve trust in the government and cause banks to restrict lending, which could harm future investment.

There is also criticism that moving white farmland into black hands will not solve South Africa’s longstanding problems like poverty and low investor confidence.